Directors and Officers Liability

Directors & Officers Liability insurance helps cover defense costs and damages from wrongful act allegations and lawsuits brought against your organization's board of directors and/or officers. Directors and officers themselves could be held personally liable in some cases.

These can include securities litigation, regulatory actions, and allegations of misrepresentation and breaches of fiduciary duties.

Many things can become triggers for your shareholders, competitors, customers, employees and even government entities to make devastating claims against your directors and officers.


Who is this right for?

  • Financial Institutions
  • Nonprofit Organizations
  • Private Companies
  • Public Companies

Directors and officers insurance in California offers protection against “wrongful acts” or actions made by board directors and executives.

Those acts or actions can be related to discrimination, errors, misleading statements, harassment, wrongful termination, mismanagement of assets, and other breaches of duty committed by the directors of a company or organization.

Often times, a board member will require your organization to provide this type of coverage before he or she considers joining. Investors too may require you purchase directors and officers insurance.

This policy will pay for your defense costs and financial losses. An extension can be added to cover costs from criminal proceedings, regulators, and criminal prosecutors.

Example Scenarios:

  • Your Employment practices & HR issues
  • Actions by your shareholders
  • Reporting errors
  • Inaccurate or inadequate disclosure (e.g. in company accounts)
  • Decisions that exceed the authority of your company’s officer
  • Failing to comply with all regulations and laws

Who is covered?

All your current, future and past directors/officers and subsidiaries. This can also include non-executive directors.

What’s not covered?

  • Fraud
  • Intentional non-compliant acts
  • Illegal compensation or personal profit
  • Property damage and bodily harm (except Corporate Manslaughter)
  • Legal action already taken before the policy began
  • Claims made under a previous policy 
  • Claims that are covered by another insurance policy
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